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POLITICS: Pharma spends more on promotion than on R&D

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Probably no surprise that big pharma spends more on promotion than on

R & D but someone has actually quantified it.

-jennifer

Gagnon MA, Lexchin J (2008) The Cost of Pushing Pills: A New Estimate

of Pharmaceutical Promotion Expenditures in the United States. PLoS

Med 5(1): e1 doi:10.1371/journal.pmed.0050001

http://medicine.plosjournals.org/perlserv/?request=get-document & doi=10.1371%2Fjo\

urnal.pmed.0050001 & ct=1

Abstract

Introduction

The amount spent on pharmaceutical promotion versus research and

development is central to the debate around whether the pharmaceutical

industry is primarily driven by innovation or marketing. Information

on promotional expenditures from IMS, the most widely quoted authority

that surveys pharmaceutical firms, may not be reliable.

Methods

We accessed data from CAM, a global market research company dedicated

to survey physicians to audit promotional and marketing activities

undertaken by the pharmaceutical industry, compared its estimates to

those from IMS and determined the relevant figures from both

organizations in each category of promotional expenditures to arrive

at a new estimate of total spending.

Results

Pharmaceutical promotion in the United States in 2004 is as high as

$57.5 billion compared to the figure of $27.7 billion given by IMS.

Excluding direct-to-consumers advertising and promotion towards

pharmacists, the industry spent around $61,000 in promotion per

practicing physician.

Comment

As a percent of U.S. domestic sales of $ 235.4 billion, promotion

consumes 24.4% of the sales dollar versus 13.4% for R & D. In light of

these numbers, one can safely argue that marketing is predominant over

R & D in the pharmaceutical industry, contrary to the industry’s claim.

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What they don't say is a large part of pharma research is done at U.S.

universities through taxpayer funded grants. This medical research grant money

is part of the Defense budget. The government isn't in the money making business

so the drug is given to the pharma companies. This was in one of Noam Chomsky's

books.

I'll leave it up to you to determine if this is defending for or against our

health. It's at least offensive in that all citizens pay for most or every part

of the entire process wheather it be r & d, FDA approval, taxes not returned from

advertising write offs or at the pharmacy. Some even buy stock too.

Wanita

" Steinbachs " jen@... wrote:

>Probably no surprise that big pharma spends more on promotion than on

>R & D but someone has actually quantified it.

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